Can I move the transformation point without the mouse?

I have a bit of a puzzler in Photoshop. I'm using CS4, but I doubt the version matters.

I am modifying a character by swiveling the arm up and down. I am unable to drag the transformation point to the shoulder so I can easily pivot the arm. When I click and drag, it nudges the entire layer instead of moving the transformation point. I've gone ahead and rotated the object and nudged it to the correct position, but I would like to know why I am unable to drag the transformation point. This is especially vexing, because I can do this just fine with other objects (including the arm), but this one layer is thwarting me.

I am attaching a screen shot of the object in Free Transform mode. No matter how far in I zoom in to increase the distance on screen between the transformation point and the bounding box, I simply cannot grab the point with my mouse.

Interesting. I didn't think this would work, but when I change the point to anywhere along the edge, I can then grab the transformation point and drag it. Once there, I run into the same problem, but this workaround allows me to bypass that problem. Thanks.

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